Dr. Reddy’s Laboratories (NYSE:RDY) Reaches New 1-Year Low on Disappointing Earnings

Shares of Dr. Reddy’s Laboratories Ltd (NYSE:RDY) hit a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $12.42 and last traded at $12.3950, with a volume of 419993 shares trading hands. The stock had previously closed at $13.14.

The company reported $0.06 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.03). The firm had revenue of $852.55 million during the quarter, compared to the consensus estimate of $886.58 million. Dr. Reddy’s Laboratories had a return on equity of 12.28% and a net margin of 12.90%.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on RDY shares. The Goldman Sachs Group lowered Dr. Reddy’s Laboratories from a “neutral” rating to a “sell” rating in a research note on Thursday, April 23rd. Weiss Ratings cut Dr. Reddy’s Laboratories from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Dr. Reddy’s Laboratories has an average rating of “Hold” and a consensus price target of $16.90.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in RDY. Invesco Ltd. increased its stake in Dr. Reddy’s Laboratories by 7.6% in the second quarter. Invesco Ltd. now owns 253,342 shares of the company’s stock worth $3,808,000 after purchasing an additional 17,907 shares during the period. EverSource Wealth Advisors LLC boosted its stake in shares of Dr. Reddy’s Laboratories by 71.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock valued at $47,000 after purchasing an additional 1,294 shares during the period. First Trust Advisors LP boosted its stake in shares of Dr. Reddy’s Laboratories by 23.3% during the second quarter. First Trust Advisors LP now owns 65,652 shares of the company’s stock valued at $987,000 after purchasing an additional 12,390 shares during the period. Sei Investments Co. grew its holdings in shares of Dr. Reddy’s Laboratories by 37.3% in the second quarter. Sei Investments Co. now owns 124,136 shares of the company’s stock worth $1,866,000 after purchasing an additional 33,747 shares during the last quarter. Finally, Quantinno Capital Management LP increased its stake in Dr. Reddy’s Laboratories by 92.6% in the 2nd quarter. Quantinno Capital Management LP now owns 235,044 shares of the company’s stock worth $3,533,000 after buying an additional 112,988 shares during the period. Hedge funds and other institutional investors own 3.85% of the company’s stock.

Dr. Reddy’s Laboratories Stock Up 4.0%

The company’s 50 day moving average is $13.60 and its 200 day moving average is $13.79. The company has a market cap of $11.28 billion, a PE ratio of 23.29, a P/E/G ratio of 19.35 and a beta of 0.27. The company has a current ratio of 1.88, a quick ratio of 1.38 and a debt-to-equity ratio of 0.03.

About Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories Ltd. is an India‐based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost‐effective generic treatments for branded drugs that have lost patent protection, along with in‐house research into innovative molecule development.